Asking price, selling price, B2B , B2C, Lead, Prospect, ACV (Annual Contract Value), ARR (Annual Recurring Revenue) , Churn Rate, Closing Ratio, Conversion, Conversion Rate, CAC (Customer Acquisition cost), CLV ( Customer Lifetime Value), Forecasting, KPIs (Key Performance Indicators) , Lead Scoring, MRR ( Monthly recurring Revenue) , NPS (Net Promoter Score) , Profit margin, Quota, SPM( Sales Performance Management) , Sales Pipeline Coverage, value Chain, ABC ( Always Be Closing) , ABS (Account Based Selling) , BANT framework( Budget Authority Need Time), Benefits, Cold Calling, Cross-selling , Direct Sales, Discovery calls, feature, Hard Sell, Mark up, Objection, Pain Point, Positioning statement, Prospecting , sales enablement, sales script, smattering, social Selling, soft Sell, sound bite, up selling, value proposition, SaaS ( Software as a service)
Business Terms
Price :, asking price, selling price, value,
Sell: put up for sale, auctioning , retailing,
Evaluation: assessment, appraisal, judgement,
Business-to-business (B2B) : Business-to-business (B2B)
Business to customer (B2C): Business-to-customer (B2C) clothing, furniture, groceries, and everyday essentials.
LEAD : A lead is any potential customer who expresses interest in your company’s products
Prospect : A prospect is a lead that has interacted with someone in your company: someone in the store looking at products. Leads are outside the window thinking about coming in.
Annual contract value (ACV)
Annual contract value (ACV) is the average revenue generated for a particular customer per year. For example, a $10 million, 10-year contract has an ACV of $1 million per year.
Annual recurring revenue (ARR)
Annual recurring revenue (ARR) is the amount of money a business expects to earn over one year—from all its customers, not just one. investment cost of $100,000 and generate an average annual profit increase of $20,000, the accounting rate of return will be 20%. The ARR on this investment is 0.20 x 100 or 20%.
Churn rate
Churn rate is the percentage of customers who stop buying from your company in a given time frame. : (Lost Customers ÷ Total Customers at the Start of Time Period) x 100.
Closing ratio
It compares the number of closed deals to the number of prospects the agent interacted with. 100 sales prospects and closed 25 deals, your closing ratio is 25:100, or 25%.
Conversion
Conversion refers to when you got something you wanted from a customer.
Conversion rate is the percentage of users who take a desired action,
Conversion rate
Conversion rate is the percentage of prospects that completed the desired action.
Formula: divide your total number of conversions by your total number of opportunities, and then multiply that by 100 to get a percentage.
Customer acquisition cost (CAC)
Customer acquisition cost (CAC) refers to the amount of money spent on the process of acquiring a customer.
Customer lifetime value (CLV)
how much money an individual customer will give your company over their lifetime.
Forecasting
Sales forecasting is the process of predicting future sales
Key performance indicators (KPIs)
Key performance indicators (KPIs) are numerical measurements that reflect how a business or individual employee is performing. Example: number of cold calls made, and number of products sold. In simple words, it’s a report card for employees.
Lead scoring
Lead scoring is a ranking system that shows how likely you will buy a product. It is a process where you assign a score (often 1-100) to your leads.
Monthly recurring revenue (MRR)
Monthly recurring revenue (MRR) is the same concept as annual recurring revenue (ARR) but is measured on a monthly scale.
Net Promoter Score® (NPS)
NPS is a metric used to assess customer loyalty. how likely they are to recommend the business or product . 3 types: promoters , passives or detractors
Profit margin
Profit margin is a common measure of the degree to which a company or a particular business activity makes money.
( Revenue – Cost : Revenue) X 100 = X%
Quota
A quota refers to the number of sales a rep is expected to achieve over a specific time frame Example: Joe has a quota to sell 10 cars each month. He’ll likely receive a commission for plus a bonus when he achieves his sales quota.
Sales performance management (SPM)
SPM is a data-informed approach to plan, manage, and analyze sales performance.: 1)Where to sell 2)how to sell 3)what to sell .
Sales pipeline coverage
A sales pipeline is the stages of a buyer’s journey from being interested to buying.
Value chain
Value chain refers a step by step model of a product from idea to reality.
Sales strategy sales terms
Always be closing (ABC )
ABC stands for “always be closing.”. It’s a strategy that reminds a seller that he must do is very best to finalize a sale or push a client toward a sale.
Account-based selling (ABS)
It’s a strategy that aims at selecting the best clients to go after to make sales.
BANT framework
It is a process that helps you rank and identify leads worth pursuing. 4 factors : budget, Authority, Need, Time.
Benefits
What are the advantages of buying this product like saving time, free pillows that comes with bed.
Cold calling
Making calls to get people to buy your products.
Cross-selling
Cross-selling is the act of selling an additional product or service to a customer. new pillows with their new mattress.
Direct sales
Direct sales are sales that don’t require a middleman.Direct sales include selling a brand directly to a consumer , like Nike sell you shoes inside their store or a sales person come to your house to sell you a set of jewelry.
Discovery call
A discovery call is an initial conversation a lead (soon-to-be prospect), it is the first interaction with a prospect interested in a specific product or service.
Feature
A feature is an aspect of a product that directly benefits a customer. A feature is an essential function or component of a good or service . A feature of an oven is that it can fully heat up in five minutes. The benefit of this feature is that it allows you to cook a meal quickly.
Hard sell
A hard sell is a sales strategy that is direct and pushy, with the objective of getting the customer to get the product in the short-term.
Markup
A markup refers to a price increase for a product or service. It is the difference between the selling price of a good or service and its cost. You increase the price of a product to get more money due to the fact you needed more money that day.
Markup calculates profit as a percentage of the cost price, while margin calculates profit as a percentage of the selling price.
- Gross Profit Margin = Sales Price – Unit Cost = $6.50 – $5.00 = $1.50.
- Markup Percentage = Gross Profit Margin/Unit Cost = $1.50/$5.00 = 30%.
- Gross Profit Margin Percentage = Gross Profit/Sales Price = $1.50/$6.50 = 23%
- Sales Price = Cost X Markup Percentage + Cost = $5.00 X 30% + $5.00 = $6.50
Objection
Objections are any concerns raised by prospects during a sales conversation. It is a reason why the buyer don’t want to buy a product like if it’s too big or expensive.. There are 4 objections : need, urgency, trust and money.
Pain point
A pain point is a specific problem for a lead—a problem that can hopefully be fixed by a product or service from your company. A business owner has no computer and feels outdated, so you offer him to buy a brand new computer from you and fix his problem. 3 types of pain point : Positioning, financial, people.
Positioning statement
A positioning statement is a semi-prepared statement used by sales reps to start conversations with potential customers. Example : We’re Wistia. We make marketing software, video series, and educational content based on the belief that anyone can use video to grow their business and their brand.”
Prospecting
Sales prospecting is the never-ending process of identifying and contacting potential buyers.
Sales enablement
Sales enablement describes the process of providing your sales team with the tools, training, skills, or resources they need to succeed.
Sales script
Sales scripts are written dialogues or guidelines used by sales reps while they’re interacting with prospects.
Smarketing
In brief, it’s making sure the sales and marketing teams are always talking to each other.
Social selling
The use of social media to sell things even if you don’t sell the actual product online.
Soft sell
A soft sell is a strategy in which sales reps take time to build trust with the prospect
Sound bite
Sound bites are small phrases that sales reps use to communicate simple matters to prospects.They are brief and clear statements that help pass the message to customers or answer a question they have. Sound bite of Mc Donald’s : Where’s the beef?
Upselling
Upselling is a sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue.
Value proposition
A value proposition is a breakdown of all the benefits provided by a product, often in a concise statement. 3 main elements of a value proposition: the headline, the subheadline, and a visual element.
Saas (Software as a service)
Software as a service (or SaaS) is a way of delivering applications over the Internet—as a service. Example : Microsoft, Shopify, Adobe, Mailshimp, Dropbox.
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